Testamentary Trust Basics

Testamentary Trust | Chicago Estate PlanningWhile simple wills are a crucial estate planning vehicle for the structuring of the Last Will & Testament, a testamentary trust can provide several useful advantages that a simple will alone cannot accomplish. A testamentary trust is a fiduciary relationship formed through written provisions of a deceased person’s will. Testamentary are especially beneficial when a grantor wishes to leave behind their property or assets to a beneficiary after a specified time has passed.

Some circumstantial instances in which a testamentary may be a necessary estate planning device would be:

  • If you would like to avoid entrusting loved ones with a lump sum amount of a cash and would rather provided an extended flow of financial support
  • If you would like to entrust your children with assets, such as money, property ownership or business ownership, after they have become legal adults
  • If you would like to establish a charitable trust and make annual contributions to a non-profit charity for years after your passing
  • If you would like to establish a special needs trust and provide for a loved one with special needs years after your passing
A testamentary trust is an incredibly useful legal mechanism for individuals, professionals and families in the construction of a last will and testament in order to leave behind estate property and assets for other loved ones after a specified time period.
Although testamentary trusts might be most commonly structured for the purpose of estate tax reductions and other specific tax advantages, testamentary trusts can also be incredibly beneficial for the protection of appreciating assets, such as in-demand real estate property, precious metals, collectible items or any other valuables which gain value over time. A testamentary trust gives a grantor the security and comfort that these assets will be able to continue to accrue value after their passing. Testamentary trusts also provide a means for these appreciating assets to be transferred to heirs after a certain time period or after acquiring a specific monetary worth. Our Chicago estate planning attorneys can provide legal representation our clients in the structuring in the last will and testament and the incorporation of testamentary trusts with the simple will.